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HTHIY or DHR: Which Is the Better Value Stock Right Now?
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Investors with an interest in Diversified Operations stocks have likely encountered both Hitachi Ltd. (HTHIY - Free Report) and Danaher (DHR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Hitachi Ltd. is sporting a Zacks Rank of #2 (Buy), while Danaher has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HTHIY has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HTHIY currently has a forward P/E ratio of 32.57, while DHR has a forward P/E of 35.31. We also note that HTHIY has a PEG ratio of 2.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DHR currently has a PEG ratio of 4.41.
Another notable valuation metric for HTHIY is its P/B ratio of 2.72. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, DHR has a P/B of 3.88.
Based on these metrics and many more, HTHIY holds a Value grade of B, while DHR has a Value grade of F.
HTHIY stands above DHR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HTHIY is the superior value option right now.
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HTHIY or DHR: Which Is the Better Value Stock Right Now?
Investors with an interest in Diversified Operations stocks have likely encountered both Hitachi Ltd. (HTHIY - Free Report) and Danaher (DHR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Hitachi Ltd. is sporting a Zacks Rank of #2 (Buy), while Danaher has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HTHIY has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HTHIY currently has a forward P/E ratio of 32.57, while DHR has a forward P/E of 35.31. We also note that HTHIY has a PEG ratio of 2.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DHR currently has a PEG ratio of 4.41.
Another notable valuation metric for HTHIY is its P/B ratio of 2.72. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, DHR has a P/B of 3.88.
Based on these metrics and many more, HTHIY holds a Value grade of B, while DHR has a Value grade of F.
HTHIY stands above DHR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HTHIY is the superior value option right now.